Remy Cointreau chief resigns after brief tenure

SamSchechner

PARIS -- The newly minted chief executive of Remy Cointreau resigned at a board meeting on Thursday, the company said, leaving the French liquor company under interim management during a broader spirits slump in China.

Frederic Pflanz, who took over Remy Cointreau three months ago, is stepping down "for personal reasons," the company said in a brief news release. Chairman Francois Heriard Dubreuil will take over Mr. Pflanz's responsibilities "as a transitional measure," the statement added.

Mr. Pflanz, who had previously spent four years as chief financial officer, will stay as a "development director," working on projects he had already initiated, the company said without providing further details on the reasons behind the change.

Like many of its industry rivals, the maker of Remy Martin cognac is suffering from a sharp slowdown in Chinese sales because of a government crackdown on extravagant gifts. Mr. Pflanz himself warned in late November that the cutback on sponsored banquets and gift-giving in China would push the company's operating profit down at least 20% for the fiscal year ending March 31, on the heels of a 6.2% decline in the six-month period ended Sept. 30.

Mr. Pflanz's resignation comes as a surprise, following his grooming process to take over from longtime former CEO, Jean-Marie Laborde. In late 2012, Mr. Pflanz had added the role of chief operating officer to his portfolio. His appointment to the CEO role was announced in June.

Remy Cointreau's stock has been hit hard in recent months by declining results. As of Thursday, Remy Cointreau's stock is down 23% from its level when Mr. Plfanz took over at the beginning of October.

Its shares fell less than 1% on Thursday to 60.46 euros ($82.60) in trading in Paris.

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